On Issuing and Placing Vnesheconombank's Domestic Currency-Denominated Bonds

Today, Vnesheconombank fully placed its debut issue of currency-denominated bonds series 01 worth 2 billion dollars at the Moscow Interbank Currency Exchange. The bonds were placed through closed subscription among Russian lending institutions. The rate of raising funds was 2.24% on the first coupon. The bond maturity is one year. Bond yields are to be paid twice a year.

Russia’s Sberbank acted as a co-organizer of the issue, CJSC Bank Ruskii Standard, OJSC ROSBANKand OJSC Gazprombank acted as underwriters, OJSC Aldfa-bank, CJSC CITIBANK and CJSC Raifeisenbank acted as co-underwriters.

The amount of raised funds will be used to replace Bank of Russia funds deposited with Vnesheconombank subject to Federal Law dated 13.10.2008 ¹ 173-FZ “On Additional Measures for Supporting the Financial System of the Russian Federation”. Vnesheconombank used these funds to refinance Russian companies’ debts to foreign creditors as well as to raise financial resources to finance Vnesheconombank’s credit-investment activity.

Management Board member – Vnesheconombank Deputy Chairman Petr Fradkov said: “Vnesheconombank’s bond placement testifies to the fact that market players have great confidence in the Bank and that it is a reliable government institution that always fulfills its obligations. The unique feature of this bond placement is not only its record amount but also the fact that the Russian borrower’s bonds are being for the first time placed at the Moscow Interbank Currency Exchange with a US dollar-denominated nominal. Thus, this bond placement opens up the way for other Russian borrowers that are planning to raise financial resources on the domestic market and contributes to the development of the Russian financial infrastructure”.

Origin: Press Office of Vnesheconombank
Contact person; Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru

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